South Korea Plans Crypto Law as Tax Repeal Reaches Committee Ecosystem English News
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Reguerrastaff writerReviewed by Yohan Yunstaff editorSouth Korea plans stablecoin rules as opposition pushes crypto tax
repeal Latest NewsPublishedJul 29, 2026The FSC reportedly plans a government-backed digital asset bill covering
stablecoins and exchanges, while opposition lawmakers seek to scrap a 22% crypto tax due in 2027.South Korea’s
Financial Services Commission (FSC) reportedly plans to draft a consolidated Digital Asset Basic Act with the ruling
Democratic Party, giving lawmakers a government-backed proposal covering stablecoins and the broader cryptocurrency
market after months of delays.According to an Edaily report published Wednesday, the FSC told the National Assembly
ahead of a policy briefing that it intends to introduce a consolidated bill. The proposal would reportedly cover
stablecoin issuance and circulation, digital asset business rules, exchange entry requirements, disclosures, internal
controls and system-resilience standards.A consolidated government-ruling party proposal could provide a central
framework for negotiations. At the moment, 10 separate digital asset and stablecoin bills are pending in Parliament,
while disagreements have prevented South Korea from settling key elements of its second-stage crypto legislation. The
FSC has not finalized when or how the consolidated bill will be introduced. Key disputes remain over whether
won-denominated stablecoin issuers should be majority bank-owned and whether ownership limits should apply to major
crypto exchanges. Opposition crypto tax repeal bill heads for reviewSeparately, the National Assembly’s Finance and
Economic Planning Committee was scheduled to discuss an opposition bill on Wednesday that would abolish South Korea’s
crypto income tax before its Jan. 1, 2027 implementation.The Income Tax Act amendment was introduced on March 19 by
People Power Party lawmaker Song Eon-seok. It aims to delete the provision taxing income from transferring or lending
digital assets. It is expected to be referred to the committee’s tax subcommittee for detailed consideration, Edaily
reported.A separate repeal petition backed by more than 50,000 people is also expected to go before a petitions
subcommittee. However, neither subcommittee has been fully constituted, and no review dates have been set.Related: South
Korea draft bill puts stablecoins, RWAs under finance laws: ReportFrom Jan. 1, 2027, income from transferring or lending
crypto exceeding 2.5 million won (about $1,700) annually is set to face a 20% tax plus a 2% local income tax. The
government and ruling Democratic Party support implementing the tax, while the opposition argues that taxing crypto
while most ordinary stock investors remain exempt is unfair. On May 7, the Finance Ministry said the tax would proceed
after repeated delays.Magazine: Inside the ‘fake police raid’ that forced a $1M Bitcoin transfer Subscribe to daily
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